SGX:H30

Stock Analysis Report

Executive Summary

Hong Fok Corporation Limited, an investment holding company, primarily engages in the investment, construction, development, and management of properties in Singapore and Hong Kong.

Snowflake

Fundamentals

Undervalued with proven track record.

Risks

  • Hong Fok is not covered by any analysts.

Similar Companies

Share Price & News

How has Hong Fok's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

H30

-0.8%

SG Real Estate

-1.4%

SG Market


1 Year Return

23.3%

H30

-5.2%

SG Real Estate

-2.8%

SG Market

H30 outperformed the Real Estate industry which returned -5% over the past year.

H30 outperformed the Market in Singapore which returned -2.4% over the past year.


Share holder returns

H30IndustryMarket
7 Day-2.4%-0.8%-1.4%
30 Day-4.7%1.0%0.5%
90 Day-1.2%-6.6%-4.7%
1 Year25.2%23.3%-2.2%-5.2%1.2%-2.8%
3 Year27.4%22.4%3.2%-5.2%15.9%3.5%
5 Year1.5%-6.0%-0.7%-12.8%9.0%-9.0%

Price Volatility Vs. Market

How volatile is Hong Fok's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hong Fok undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Hong Fok's share price is below the future cash flow value, and at a moderate discount (> 20%).

Hong Fok's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Hong Fok is good value based on earnings compared to the SG Real Estate industry average.

Hong Fok is good value based on earnings compared to the Singapore market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hong Fok, we can't assess if its growth is good value.


Price Based on Value of Assets

Hong Fok is good value based on assets compared to the SG Real Estate industry average.


Next Steps

Future Growth

How is Hong Fok expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Hong Fok is high growth as no revenue estimate data is available.

Hong Fok's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Unable to compare Hong Fok's revenue growth to the Singapore market average as no estimate data is available.

Hong Fok's earnings growth is positive but not above the Singapore market average.

Hong Fok's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hong Fok will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hong Fok performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hong Fok's year on year earnings growth rate has been positive over the past 5 years.

Hong Fok's 1-year earnings growth is less than its 5-year average (4.4% vs 4.6%)

Hong Fok's earnings growth has exceeded the SG Real Estate industry average in the past year (4.4% vs -22.8%).


Return on Equity

Hong Fok has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hong Fok used its assets more efficiently than the SG Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Hong Fok has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Hong Fok's financial position?


Financial Position Analysis

Hong Fok is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hong Fok's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Hong Fok's level of debt (32.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (44.4% vs 32.4% today).

Debt is not well covered by operating cash flow (10%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Hong Fok's current dividend yield, its reliability and sustainability?

1.22%

Current Dividend Yield


Dividend Yield and Payments Analysis

Hong Fok's pays a lower dividend yield than the bottom 25% of dividend payers in Singapore (2.52%).

Hong Fok's dividend is below the markets top 25% of dividend payers in Singapore (5.66%).

Hong Fok is not paying a notable dividend for Singapore, therefore no need to check if the payments are stable.

Hong Fok is not paying a notable dividend for Singapore, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Hong Fok's dividends as it is not paying a notable one for Singapore.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hong Fok's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Patrick Cheong (70yo)

5.7yrs

Tenure

0

Mr. Pin Chuan Cheong, also known as Patrick, served as Joint Chairman and Joint Managing Director of Winfoong International Ltd. from June 23, 2014 to November 27, 2015. Mr. Cheong has been Joint Chairman  ...


Management Age and Tenure

5.7yrs

Average Tenure

65yo

Average Age

The average tenure for the Hong Fok management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.4yrs

Average Tenure

64.5yo

Average Age

The tenure for the Hong Fok board of directors is about average.


Insider Trading

More shares have been bought than sold by Hong Fok individual insiders in the past 3 months.


Recent Insider Transactions

BuyS$51,97523 Sep 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares63,000
Max PriceS$0.82
BuyS$50,70003 Sep 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares60,000
Max PriceS$0.84
BuyS$89,96023 Jul 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares104,000
Max PriceS$0.86
BuyS$171,62022 Jul 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares199,000
Max PriceS$0.86
BuyS$53,62520 Jun 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares65,000
Max PriceS$0.82
BuyS$39,50006 Jun 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares50,000
Max PriceS$0.79
BuyS$55,65023 May 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares70,000
Max PriceS$0.79
BuyS$462,50029 Mar 19
Goodyear Realty Co. Pte. Ltd.
EntityCompany
Shares500,000
Max PriceS$0.92
BuyS$313,25020 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares350,000
Max PriceS$0.89
BuyS$130,60008 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares170,000
Max PriceS$0.77
BuyS$209,52006 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares291,000
Max PriceS$0.72
BuyS$175,90005 Mar 19
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares245,000
Max PriceS$0.72
BuyS$1,627,49814 Dec 18
Goodyear Realty Co. Pte. Ltd.
EntityCompany
Shares2,170,000
Max PriceS$0.75
BuyS$3,749,99606 Dec 18
Pin Chuan Cheong
EntityIndividual
Role
Co-Chief Executive Officer
Joint Chairman & Joint CEO
Shares5,000,000
Max PriceS$0.75
BuyS$488,32503 Dec 18
Hooi Kheng Cheong
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares651,100
Max PriceS$0.75
BuyS$3,749,99703 Dec 18
Sim Eng Cheong
EntityIndividual
Role
Member of the Board of Directors
Joint CEO & Director
Shares5,000,000
Max PriceS$0.75

Ownership Breakdown


Management Team

  • Patrick Cheong (70yo)

    Joint Chairman & Joint CEO

    • Tenure: 5.7yrs
  • Sim Eng Cheong (58yo)

    Joint CEO & Director

    • Tenure: 29.3yrs
  • Hooi Kheng Cheong (66yo)

    COO & Executive Director

    • Tenure: 30.5yrs
  • Chay Koh

    VP of Accounts & Finance and Company Secretary

    • Tenure: 0yrs
  • Puay Kheng Cheong (64yo)

    Vice President of Administration & Personnel

    • Tenure: 5.3yrs
  • Jimmy Yeo

    Vice President of Marketing

    • Tenure: 0yrs
  • Swee Oi Lo

    Company Secretary

    • Tenure: 4.8yrs

Board Members

  • Patrick Cheong (70yo)

    Joint Chairman & Joint CEO

    • Tenure: 5.7yrs
  • Sim Eng Cheong (58yo)

    Joint CEO & Director

    • Tenure: 29.3yrs
  • Hooi Kheng Cheong (66yo)

    COO & Executive Director

    • Tenure: 30.5yrs
  • Adrian Chan (54yo)

    Non-Executive Independent Chairman

    • Tenure: 0.5yrs
    • Compensation: S$85.00k
  • Steven Lim (63yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: S$87.50k
  • Yew Hon Chow (68yo)

    Lead Independent Director

    • Tenure: 5yrs
    • Compensation: S$95.00k

Company Information

Hong Fok Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hong Fok Corporation Limited
  • Ticker: H30
  • Exchange: SGX
  • Founded: 1967
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: S$704.526m
  • Shares outstanding: 859.18m
  • Website: https://www.hongfok.com.sg

Location

  • Hong Fok Corporation Limited
  • The Concourse
  • No. 41-00, 300 Beach Road
  • Singapore
  • 199555
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
H30SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
H8VBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

Hong Fok Corporation Limited, an investment holding company, primarily engages in the investment, construction, development, and management of properties in Singapore and Hong Kong. The company develops re ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 12:37
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.